By Ron Derby
Nov. 14 (Bloomberg) -- Uranium One Inc., the miner of uranium in Kazakhstan, posted a wider loss and said it will cut exploration and spending because of the weakening global economy and falling commodity prices.
Uranium One is ``re-evaluating our project portfolio and focusing on our low-cost assets,'' Jean Nortier, the Toronto- based company's chief executive officer, said today in a statement.
Prices for the nuclear fuel have slumped 47 percent in 2008 to a two-year low on concern that the credit crisis will slow the development of new nuclear power projects. Uranium One said last month it will shut the Dominion mine in South Africa and may seek a buyer for the project.
The company's third-quarter loss widened to $2.01 billion, or $4.30 a share, from $17..3 million, or 4 cents, a year earlier. It took at $2.8 billion writedown on the value of mineral interests, plant and equipment, $1.8 billion of which was attributable to Dominion. Sales increased more that seven- fold to $56.7 million.
The shares rose 36 cents, or 4.2 percent, to 9 rand (88 U.S. cents) as of 3:34 p.m. in Johannesburg trading.
Uranium One cut its forecast output for 2008 to 2.8 million pounds from 3.1 million pounds previously because of Dominion's closure, lower-than-expected production from Kazakhstan and a delay in start up of the Kharasan project in the central Asian country.
Production for 2009 is estimated at 3.5 million pounds, and 2010 at 5.6 million pounds.
http://www.bloomberg.com/apps/news?pid=20601082&sid=a2KDPRTBgqr4&refer=canada
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